Vendor Financing

One form of financing that should not be overlooked is your own vendors.

If the new company is well funded, vendors may be able to extend more generous terms than they did to the seller’s original company.

Changes in vendor payment terms, such as going from net 30 to net 45 (or higher), can have a quick and positive effect on your cash flow.

Also, vendors don’t charge interest for offering terms, which makes it very cost effective.